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SaaS: AWS is Used by 40 Percent of Small and Mid-sized SaaS Vendors

Home › SaaS › SaaS: AWS is Used by 40 Percent of Small and Mid-sized SaaS Vendors

By Dick Weisinger

Amazon AWS is used by 40 percent of small and medium-sized SaaS businesses, based on a report from Pacific Crest.  That’s amazingly high.  Microsoft Azure and Salesforce only hold 5 percent and 3 percent of the market.  37 percent of SaaS businesses say that they are managing their own servers.  The report expects AWS market share to grow as the number of businesses managing their own servers declines.

Other findings from the Pacific Crest report include:

  • Gross Margins from SaaS Subscriptions are up 78 percent in 2015
  • Revenue growth from SaaS subscriptions is up 46 percent in 2015
  • Highest SaaS sales came from channel and inside sales
  • SaaS businesses in the $5M – $7.5M range grew 70 percent in 2014
  • The cost to add new revenue from an existing customer is only one-quarter of the cost required to get revenue from a new customer

 

 

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December 8th, 2015
Category: SaaS
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